Can You Operate SFR and Make It Profitable?

Optimize Your Single-Family Rental Operating Model

April 2022 | Insights from Our SFR Experts – Residents and institutional investors are driving demand, convergence and transformation of the rental housing sector at a rapid pace. More than $50 billion in institutional capital is chasing single-family rental homes attracted to the sector’s low vacancy and record-setting rent growth, which increased 11.5% in November 2021, the fastest year-over-year increase in more than 16 years.

It’s been widely touted that multifamily operators and managers are best equipped and experienced to serve the rental residents. However, their legacy workflows and technology solutions, which are built on asset-centric operating models, are challenged to keep pace with the efficiency required by single-family for-rent portfolios where there is no on-site staff and all property management services are provided through centralized teams.

Does Your Operating Model Measure Up?

What Should the Industry Do?

How can leasing agents respond nimbly to prospective residents who seek a three-bedroom home to rent in the best location at the right price and don’t really care if it’s an apartment, a townhome or a detached home?

How can operators and developers meet the demands of investors who seek to deploy capital with partners who can deliver a profitable, unified rental resident experience regardless of asset class?

We have the answer …

Focus on Customer-Centricity

Commit to a customer-centric operating model where the customer, rather than the asset, is the source of truth. Multifamily and single-family rental managers who undergo this radical shift will carve out a distinct competitive advantage in the market. These industry leaders will be able to serve the resident at every life stage and transition point, and along the way materially increase resident and employee satisfaction while reducing customer acquisition and retention costs.

This shift to a customer-centric model that transcends asset classes will require multifamily and single-family rental managers to embrace the principles of:

Centralization;
Automation; and
Specialization

SFR Only Seems Easy

Legacy multifamily operating models are not optimized to efficiently support this emerging asset class.

RealFoundations works with leaders in all sectors of rental housing, including the largest single-family rental companies, to optimize operating platforms for profitability and customer loyalty. We know what works and what doesn’t …

Hint: It begins with putting the customer first.

Accelerate into SFR

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To learn more about how RealFoundations can help you run real estate better, contact us by email or +1 214 292 7000.

About RealFoundations

RealFoundations (RF) is the world’s foremost professional services firm focused solely on the real estate industry. Through our delivery of Management Consulting and Managed Services, we help companies that develop, own, operate, service or invest in real estate make better, more profitable decisions. We are proud partners to over 500 real estate companies around the globe, providing accelerated solutions that solve some of real estate’s most complex challenges. We Make Real Estate Run Better.